After notice and a hearing, the Insurance Commissioner finds that a Georgia insurer committed repeated violations of the insurance laws and issues a cease and desist order. What is the maximum administrative penalty the Commissioner may impose under Georgia law?

Why A is correct

Under O.C.G.A. § 33-6-9, when a person violates the insurance laws after notice and hearing, the Commissioner may issue a cease and desist order and impose a penalty of up to $10,000 FOR EACH ACT OR VIOLATION, in addition to suspending or revoking licenses. Because the penalty is per act, repeated violations multiply the exposure.

Why the other options are wrong

• B) $5,000 is the bad-faith penalty figure under O.C.G.A. § 33-4-6, not the administrative penalty ceiling of O.C.G.A. § 33-6-9, which reaches $10,000 per act.
• C) $1,000 is the felony threshold for premium misappropriation under O.C.G.A. § 33-23-35(c); the cease-and-desist penalty is far higher at $10,000 per act.
• D) $100,000 is a guaranty association figure for life cash surrender values under O.C.G.A. § 33-38-7; it is not the administrative penalty in O.C.G.A. § 33-6-9.

Memory hook

Ten grand a pop — each violation multiplies the Commissioner's fine.